ukrainian news - 22.06.2007
Timber Majors Stripped Of Customs Benefits
The government will focus on the draft ruling with criteria and
procedures to pick out the investment projects of top priority for
woods on June 28, as the document is expected to take effect on July 1.
So the dispute of timber merchants and bureaucrats about granting
preference to investors in projects of high-level forest utilization
has reached the final straight.
According to the draft, capital investments in top-priority project
will exceed 300 million rubles and several projects of a single
investor could be consolidated. A certain authorized body, which
establishment will be decided by cabinet, will supervise activities of
investor. Without any tenders held to the effect, that body will be
entitled to conclude a lease for a wood area that will provide logs for
the project. It will also calculate 50 percent of the minimal lease
payment for the pay-back period of the project specified in the bid.
Contrary to all expectations of timber majors, the draft spells out no
customs benefits for the projects. Industry and Energy Ministry hasn’t
abandoned the efforts to widen the list of preference given to
investors, but the sources say that First Vice Premier Sergey Ivanov
stepped in to oppose the benefits, reasoning “they would torment
competitive environment.”
See also:
- — Strong price increases in Norway on saw timber
- — Czech 2006 wood output highest since 1946
- — Successful Selling at Ligna+ 2007
- — Good prospects for timber trade in Finland
- — Ruukki Group to invest Euro 1.1 billion in Russian woodworking sector
